IPR LETTER TO KUWAITI CROWN PRINCE

UNCLAS SECTION 01 OF 02 KUWAIT 001989 SIPDIS DEPT PASS USTR FOR C. NOVELLI DEPT PASS USTR FOR J. BUNTIN E.O. 12958: N/A TAGS: KIPR ETRD KU USTR SUBJECT: IPR LETTER TO KUWAITI CROWN PRINCE REF: A. KUWAIT 01911 ¶B. STATE 123166 This is an action request for the office of the US Trade Representative (USTR). See para 1. ¶1. SUMMARY AND ACTION REQUEST. Post plans to use the release of the Special 301 report to make a new push for intellectual property rights (IPR) reform in Kuwait later this month (Ref A). Per email exchanges to USTR, post requests a letter from US Trade Representative Robert Zoellick to Kuwaiti Crown Prince Shaykh Saad Al-Abdallah Al-Sabah, which incorporates talking points aimed at improving Kuwait's IPR protection and enforcement efforts in the coming year (Ref B). A draft text of the letter is contained in para 2. Post hopes to receive a response to this draft at USTR's earliest convenience. In addition to delivering this letter to the Crown Prince, the Ambassador plans to use the letter as a starting point for discussions during upcoming meetings with other key GOK officials. END SUMMARY AND ACTION REQUEST. ¶2. Text of the letter: Your Highness: I first wish to extend my government's deep appreciation for the indispensable assistance Kuwait has provided throughout the liberation of Iraq. Your government's cooperation and commitment to this effort has been truly commendable. I would now like to turn your attention to another matter of mutual concern. On May 1, I made a worldwide announcement of the results of the 2003 "Special 301" annual review. This report examines in detail the adequacy and effectiveness of the efforts made by our international trading partners to protect intellectual property rights, such as trademarks, copyrights and patents. As you may know, Kuwait was again place on the Watch List, as a country of particular concern for insufficient protection of intellectual property. Copyright violations continue to pose the most serious problem in Kuwait, where the rate of piracy remains the highest in the Gulf region. According to industry estimates, 95 percent of motion pictures and 64 percent of records and music sold in Kuwait are illegally pirated copies. These figures have grown so far out of any reasonable proportion that they are tarnishing Kuwait's image to international investors. Companies such as Microsoft, AOL Time Warner and Disney have been placing the center of their Middle East operations in the United Arab Emirates, rather than Kuwait, resulting in large losses of revenue now and in the future for your country. As a prime example, Showtime recently signed a 10-year deal worth millions of dollars with the Dubai Investment Authority. This problem also threatens to create unnecessary strains in our bilateral relations. Last year alone the motion picture industry estimated that it lost approximately USD 10 million in Kuwait, while the music industry lost an additional USD 3.4 million from sales of illegally sold products. As the majority of those films and records are owned by American production companies or created by American artists, Kuwaiti vendors of pirated goods are in essence stealing U.S. property. The purpose of the Special 301 report is not to condemn but rather to highlight and resolve problems. The U.S. Government would like nothing better than to see Kuwait removed from the Watch List. Toward this end, we stand ready to assist you in meeting your international obligations and are willing to explore opportunities for potential technical assistance and expert training on improving IPR enforcement and protection. We must, however, see Kuwait begin to intensify the depth and breadth of its efforts. Steps that need to be taken as soon as possible include the following: -- Making a public declaration at the highest level that copyright piracy in Kuwait will not be tolerated. -- Introducing and passing the long-promised amendments necessary to make copyright law fully consistent with the provisions of the World Trade Organization (WTO) TRIPs Agreement. -- Undertaking a far more stringent and effective intellectual property enforcement campaign, including launching serious investigations of large-scale producers and distributors of illegal goods, increasing penalties for offenders, and publicizing results of the court cases as a deterrent to future crimes. To be effective, the police force must be incorporated into this process, making regular arrests of all violators. These include the young street vendors, who sell pirated copies of CDs and DVDs throughout Kuwait, to the high-level importers and manufacturers of illegal goods. Experience has shown in countries like the United Arab Emirates and Saudi Arabia, where copyright piracy once posed rampant problems, that great strides can be made once the police are directed to take proper action. In today's information and technology based global economy, intellectual property rights industries have become the growth industry of the 21st Century. Those countries that do not actively pursue and protect these intellectual property rights and associated companies are essentially closing the door on a wealth of economic potential. In the interest of both of our countries, we would like to renew our cooperation with you on this important front and see that Kuwait joins the list of countries well respected for its protection of intellectual property rights. Sincerely, Robert B. Zoellick U.S. Trade Representative URBANCIC